segmentation, targeting, positioning

Question 1

What are the 2 steps in segmentation?

Answer 1

1. identify bases for segmenting market

2. Develop profiles of resulting segments

Question 2

What are the levels of segmentation for market segmentation?

Answer 2

1. Mass marketing: same product to all
2. Segment marketing: different products to one or more
3. Niche marketing: diff pdt to subgroups within segments
4. Micro-marketing: pdt to suit tastes of individuals and locations (complete segmentation)

Question 3

What are the types of segmentation?

Answer 3

1. Geographic: world region/country, city/metro size, density/climate
2. Demographic: age, gender, income, occupation, religion, race, generation, nationality
3. Psychographic: social class, lifestyle, personality
   a. Road warriors (middle-age high income men), true blues (M+F moderate income), generation f3 (fuel, food, fast), homebodies, price shoppers
4. Behavioral: occasion, benefits, user status, usage rate, loyalty status, attitude to product

Question 4

How to segment business markets?

Answer 4

Demographics → operating variables → purchasing approaches → situational factors → personal characteristics

Question 5

How to segment international markets?

Answer 5

Geographic location, economic, cultural, political/legal

Question 6

What is the criteria for effective segmentation?

Answer 6

1. Measurable: size, purchasing power
2. Accessible: segments reachable
3. Substantial: segments large + profitable to serve
4. Differential: segments respond diff. to diff mktg mix elements
5. Actionable: programs attract segments

Question 7

What are the two steps in Targeting?

Answer 7

3) Develop measures of segment attractiveness

4) Market targeting

Question 8

What is the criteria for evaluating market segments for targeting

Answer 8

1. Segment size and growth: sales, growth rate, profitability
2. Segment structural attractiveness: competitors, avail of substitutes, power of buyers/suppliers (porter’s 5)
3. Company objectives and resources: skills and resources, competitive advantages

Question 9

What are the market coverage strategies considered under targeting

Answer 9

1. Undifferentiated: 1 mktg mix for 1 mkt
2. Differentiated: diff mix for diff segments in mkt
3. Concentrated: 1 mix for 1 segment in mkt

Question 10

What are the 2 steps in Positioning?

Answer 10

5) Develop positioning for target segment

6) Develop marketing mix for each target segment

Question 11

In positioning, how to - Identify + select competitive advantage?

Answer 11

o Product diff: features, perf, design, style
o Service diff: delivery, repair, customer svc
o Image diff: symbols, atmospheres, events
o Personnel diff: hiring, training

Question 12

What are the 4 positioning strategies?

Answer 12

more for more, more for same, more for less, same for less, less for much less

Question 13

How to develop positioning for target market? (step 5 of STP)

Answer 13

Differentiate/comparative advantage

1. identify possible CA
2. select right CA
3. communicate + deliver the chosen position

Question 14

What are the 5 patterns of target market selection?

Answer 14

1. single segment concentration
2. selective specialisation
3. product specialisation
4. mkt specialisation
5. full mkt coverage